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Good afternoon to all,
The egg market has been correcting downward and is slowing down. The tone of the market is “Attempting to settle”. There may be some more slight drops but I think it will remain around this level for the near future.
Please note that yesterday’s butter market was $2.83 not the $2.10 listed above.
Butter has finally stopped skyrocketing upwards. Butterfat is in a worldwide shortage situation. Milk production is down across the globe and therefore Butter production and cold storage levels are down. Many manufacturers had been buying aggressively to make sure they put away butter for the 4th quarter due to this. When there is excess milk most finds its way to the churns. With milk being in short supply this is not happening. I have spoken to a few butter producers this week and cream is in tight supply and the multipliers they are paying are very high. Butter is the highest it has been in years! We have a great supply of butter solids and the Cabot bulk butter will be back in stock in about 2 weeks. Cream Cheese:
This situation has gotten worse in the past 2 weeks. Savencia (manufacturer of Smithfield label cream cheese) shut down for a week for maintenance. Schreiber is still way behind on production and has stated they will not be in good shape until late in the Spring. We are doing our best to allocate what little we have to our cream cheese customer base. Cream:
We have plenty of both 36% and 40% available in the Golden Sunshine label. Due to the rapid increase in the butter market cream will be going up over .40 a QT for the month of February. That is a $5.00 a case increase! If you want to buy in, we have you covered!Cheese:
Barrels have risen and Blocks dropped some and now the spread is the lowest it has been in a long time. We are down to a .05 spread. I feel that the markets are high for this time of year, but the lack of milk is helping to keep it at lofty levels for the time being. With Playoffs and the Super Bowl followed by March Madness coming up this keeps the Block demand high. Supply Chain Issues:
This continues to play a major role in our industry. You watch the news and you hear about food inflation and empty retail shelves. It is a bad situation. Trucking is at an all-time high cost and in short supply. The Omicron spread is really taxing the workforce making it hard for manufacturers to produce with limited staff. Hopefully, this all subsides soon.Please always ask your Honor Foods salesperson about the items you are having a hard time finding from others. I and the whole Honor Foods purchasing team are constantly looking for items to keep the pipelines full.
We all want to thank you for your continued business during these unprecedented times. We hope you have a safe and relaxing weekend.